Angel Investing 101: How Anyone Can Support Startups and Make an Impact
Demystifying angel investing and why it’s more accessible—and important—than you think.
Angel investing often feels like a mysterious club reserved for billionaires and Silicon Valley elites. But that couldn’t be further from the truth.
Marcia Darwood, an experienced angel investor, shares how anyone with a bank account and internet access can start investing in startups—and why it matters.
What Is Angel Investing?
Simply put, angel investing means using your own money to invest in early-stage private companies.
Traditionally, this has been limited to accredited investors with high net worth or income. But thanks to equity crowdfunding platforms, many more people can participate today with as little as $100.
Why Should You Consider Angel Investing?
Support innovation and entrepreneurs: Help bring new ideas to life, especially those solving real problems in your community.
Diversify your portfolio: Angel investing offers exposure to high-growth potential companies not found in public markets.
Create impact: Invest in companies led by women and minorities to help close funding gaps and drive inclusive innovation.
Breaking Down Barriers
Marcia explains how the lack of diverse investors contributes to funding disparities for women and people of color.
She encourages everyone, especially those outside traditional investment circles, to educate themselves and explore angel investing opportunities.
You don’t need millions or a private jet—just the willingness to learn and start small.
How to Get Started
Explore equity crowdfunding sites like Republic, StartEngine, and WeFunder.
Attend local startup events and angel investor meetings to meet entrepreneurs and investors.
Learn to ask the right questions about the company’s problem, market, and team.
Diversify: Don’t put all your money in one startup; aim to invest across several to spread risk.
Marcia’s podcast, The Angel Next Door, and her book Do Good While Doing Well are great resources to demystify the process.
Angel Investing Is a Team Sport
Investing with groups or funds can reduce risk and increase your influence.
You get to write one check but get exposure to multiple companies, plus tap into collective expertise.
The Ups and Downs
Angel investing is risky—most startups fail.
Experts recommend limiting angel investments to 5–7% of your portfolio. But the upside can be spectacular, and holding investments for over five years may offer tax advantages.
Final Thoughts
Angel investing isn’t just for the ultra-rich.
It’s a way to support the businesses and communities you care about while potentially earning strong returns.
If you’re curious, start learning today. The resources are out there, and the barriers are lower than ever.
Want to learn more about angel investing and supporting startups?
Check out Marcia Darwood’s podcast The Angel Next Door and subscribe to The Common Cents Show for practical insights.
For more insights and detailed discussions like this, don't forget to subscribe to The Common Cents Show on YouTube and catch each episode live for the opportunity to engage with the experts.